Colorado Closings Review Exam /53 Questions and Answers

What is the purpose of discount points? - It increases the yield to lenders How is the payoff of the seller's loan shown on the worksheet? - Debit to seller and credit to buyer What happens to items listed in B2 of the title commitment? - They appear as exceptions unless removed prior to closing Bill Buyer is purchasing Sam Seller's home and assuming the existing loan. The interest on the loan is $1200 paid in arrears. The closing is March 1, 2009. How is the interest shown on the Worksheet? - A debit to the seller and credit to the buyer Which of the following is true, unless the contract states otherwise? - seller pays owner's policy and buyer pays mortgagee's policy The "gap" exception excludes what period of time from coverage under the title commitment? - from date commitment is issued to deed recording What is the proration for the real estate taxes using the 365 day method and prior year's taxes of $1245 if closing is February 15, 2010? Day of closing belongs to the seller. - $156.90 debit to the seller Which of the following statements is NOT true with respect to a broker closing a transaction? - A broker can only accept wired funds